A Quantitative Approach to Product Market Fit
tribecap.co
tribecap.co
https://www.forentrepreneurs.com/saas-metrics-2/
I found it to be more about SaaS metrics and less about product/market fit.
For example, you could have great product/market fit with poor pricing, in which case you might have awful SaaS metrics and sluggish revenue growth while having great usage metrics and rapid organic/viral user growth.
For example, imagine if PagerDuty or Slack were free for enterprises: they’d have terrible SaaS metrics but wonderful product/market fit, IMO.
Sustainable product/market fit is rare, the fake kind can be easily bought by selling a dollar for 50c.
Yeah I know, they're the joke of last week, but that methodology is pretty simple (just ask four questions) and (importantly) is trackable over time, while working for businesses of all kinds.
Is anybody else using that at the moment? How has it worked out?
One is whether the user likes it enough to keep using it. I think that's well captured by the "how disappointed" approach (and actual usage stats). Another is whether they'll be evangelical about it, and I think that's measurable with Net Promoter Score (and actual viral behavior). And a third is whether you can build a sustainable business, which early on can be pretty simple, but eventually requires a fairly complex numerical analysis.
I think a numerical approach like this one is especially valuable if the business isn't self-funding. Because a) you need to be able to prove the value of the equity you're selling, and b) if you don't price your equity properly, it's just a gift to the VCs who do that work.